Multifamily Legacy Podcast 046: Multifamily Investing: No Experience Necessary
I’ve got some golden nuggets of information for you when it comes to operations - how to do things, what to expect, and how to make money. I became a multimillionaire by doing multifamily homes. I have lots of cash flow that shows up every month because of multifamily investments.
The multifamily gain has been a blessing. I get to live a lifestyle that most will never experience. Do you want to get out of the rat race? I've made a good living flipping, selling, and wholesaling single-family homes, but I created a lifestyle by doing multifamily apartments.
Topics on Today’s Episode:
- When you buy a multifamily property, open 5 bank accounts: 1) Operating, 2) Capital improvement, 3) Security deposits, 4) Escrow, and 5) Owner distribution
- Believe in budgeting for profit; overdo or outperform your budget to have more money and profitability
- Move operating money or capex to the side, and let your management company know how much money you're setting aside for other projects
- Dictate what's going on and hold your management company accountable; know what's going on and what’s important - information and knowledge is power
- Nugget 2: For student housing, get pre-leases early; overbook leases, just like the airlines, to make up for those tenants who leave
- Believe that 100% capacity is achievable and sustainable; start a waiting list and get potential tenants to put a deposit down
- Recognize and pay staff to develop a positive and motivational culture
- Sometimes people don’t believe you or you may make mistakes; don't sweat it, always stay positive, and learn from others
Links and Resources Mentioned:
Quotes:
“Everybody, write this down or ingrain it in your mind that you want to budge for your profitability.” Corey Peterson
“We believe in budgeting for profit.” Corey Peterson
“Just always remember that you dictate what's going to go on, and if a management company or someone else doesn't get that, then maybe they're not the right one.” Corey Peterson
“You can easily see what's going on, and that's important. Information and knowledge is power.” Corey Peterson
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